Tenants have no leases with current owner. cost of preparation?

[Nir]

Should I have the tenants sign a lease agremeent? is it important to do that although apparently they are all long term tenants who are paying their rent on time? (I do have tenant acknowledgements from previous owenr). How much approximately does it cost to have a lawyer prepare that ($500, $2000, etc.?)? Are you using a standard agreement (can you please send me a link if there is one) or actually paying your lawyer 1000`s of dollars to prepare one fore you? THANKS.

 

[GarthChapman]

Lease agreements are available in the REIN Members only / Member Resources / Critical Forms section, and are available free to REIN members.

Whether or not you want your tenants to sign leases will be something you decide based on:
-your objectives and style of management
-the landlord tenant rules in the province you are buying in
-your property manager`s input
-rental market conditions
-the building`s rental history

Hope that helps,

 

[Nir]

It helps BIG time Garth,

The property is in Orillia, Ontario. There is no property manager currently, all tenants are on disability and pay their rent on time. Also, there is a 2 page tenant aknowledgment each tenant signed. Would you use one (a lease agreement) in this case?

Thanks for your highly appreciated Multiple Suggestions (MLS in the past weeks! Regards.

 

[GarthChapman]

I use leases almost exclusively in Alberta, but do so because that fits my style, it creates an initial `trial period` with a new tenant and because I can require the tenants to leave at the end of the lease if I am not satisifed they will be good long-term equity building tenants. You cannot do that in Ontario as the tenant has the right to stay past the end of the lease.

So I would recommend you ask yourself:

1) What benefit would you receive by converting to leases?

2) What benefits would the tenants receive?

3) If some are needed, can you put rules for the building in effect without leases?


And thanks for the thanks!

 

[Nir]

Interesting advice, perhaps I can put a rule or two (i.e. regarding fire code status) without leases. I will consider the different options and decide shortly.. TX & Regards.